Kothari Products, manufacturers of the Pan Parag brand of pan masala, is all set to take on rival Manikchand in the western Indian markets of Gujarat and Maharashtra.
The company recently launched pan masala Gold and Gutka in these markets. Vikram Kothari, vice president, Kothari Products, claimed the response has been tremendous. Manikchand, with a turnover exceeding Rs 150 crore per annum, has a major share of the market in the two states. Kothari said the company, Kothari Products, had a forty per cent market share. The company recently set up a factory at Vadodara, Gujarat. "We would like to increase our turnover from the present Rs 3-4 crore to about Rs 6-7 crore per month," he said.
The commissioning of the lamination plant at Kanpur, set up at a cost of Rs 4 crore, is expected to give a fillip to the company's profits.
The plant, which will initially provide service to the company's products, will later take up jobs for other manufacturers, M M Kothari, chairman of the company said. He was addressing the shareholders at the 13th annual general meeting of the company.
For the year-ended September 1996 while sales rose to Rs 253.03 cr (Rs 184.47 cr), other income was less at Rs 4.12 cr (Rs 5.56 cr). Profit before depreciation and tax was higher at Rs 20.90 cr (Rs 14.90 cr). Depreciation was higher at Rs 60 lakh (Rs 51 lakh). Provision for taxation was placed at Rs 8.50 crore against Rs 5 crore in the previous year.
The profit after tax at Rs 11.80 crore was higher by Rs 2.41 cr over the previous year.
The provision for dividend of 65 per cent will result in an outgo of Rs 3.25 crore as against Rs 2.75 cr.ore.